High-End Repositioning in a White-Hot Market
Andante, a 576 unit property in Phoenix, AZ, was purchased in May 2017 for $85.25M. Security Properties developed an investment thesis focused on the projected influx of high-paying jobs in the market and sought to capitalize on it by creating product to meet the impending demand. With that in mind, SP's team drafted an ambitious plan to bring all units to a uniform, high-end spec as well as modernize the clubhouse and expansive pool area.
The comprehensive unit renovations feature warmly lit bathroom mirror surrounds, quartz countertops throughout, updated lighting, and a tech package at a cost of nearly $15K per unit.
Andante ultimately sold in January 2021 for $145.25M which equates to a deal-level IRR of 33.5% and a 2.6 equity multiple.